Can you say you are responsible if,
- You provide inferior products or services
- You are not transparent in your working
- You do not follow good governance
- You evade taxes
- You do not comply with laws, rules & regulation
Stating that you are Responsible & continuing to adopt the above practices is an oxymoron situation.
Responsibility as understood currently
- Responsibility means being responsible to only one stakeholder which is the shareholder.
- All returns are maximised to the benefit of that Shareholder.
- All other Stakeholders are often short charged.
If business is not responsible
- Sooner of later one or more than one stakeholder will revolt and cause pain to the business.
- The efforts of the business will have to directed to pacify that stakeholder.
- Business attention is diverted from its core function leading to gradual decline.
Instances of Stakeholder revolting against the business
- Customer buying products from competitors
- Customer unwilling to pay higher price
- Vendors supplying inferior products.
- Low productivity from employees
- Employee attrition
- Punitive action by Regulatory agencies
- Environmental activism
Business has longevity
Your business continuity is ensured
Business has relevance
Your products & services are in tune with current requirements and are always needed.
Business is sustainable
Your business has a good growth and is well funded.
Responsibility to Whom
- Any business has multiple stakeholder
- Stakeholders include – Customer, Vendor, Employee, Lenders, Community, Environment, Government, Media.
- Shareholder is only one of the stakeholder.
- Hence business needs to be perceived as Responsible by all the stakeholders.